Interpreting EuroDollar Futures


Monetary

Updated May 9th, 2021

I enjoyed this with Jeff Snider.

Here was another good one with Jeff.

And a hedgeye video here.

Dollars Traded Outside The US, primarily in London.

Offshore Monetary System. Outside US jurisdiction and Federal Reserve Control.

Euro Yen, Euro Euro.

Tiffin’s paradox, US de-linked from stores of US Reserves. 1960 EuroDollar took over role of function of global reserve currency, but got out of control.

Monetary System broken. No inflation. No Growth.

Japanese Failed Experiment.

Dealer (Big Banks) network illiquidity events.

Equities. QE psychology.

Bonds: All junk. EuroDollar futures, currency swaps.

Interest Rate Fallacy: low interest rates are tight money, low inflation.

Inflation is a broad based increase in consumer prices of years long period of time.

Disinflation because of interest rate fallacy EuroDollar broken. In 14 years. Doesn’t offer growth at a rate that allows the system to operate at its best levels.

Fix banking problem. Governments doing more but it’s still the same old same old and the system is not working.

What you don’t see in the shadows offshore system. EuroDollar futures, currency swaps

SLR: supplemental leverage ratio